Polish sweets market 2013

Tuesday, 24 February, 2015 Food From Poland 21/2015
An analysis of selected issues and trends in the Polish production and foreign trade of confectionery products for 2013. (FAMMU/FAPA) Foreign Agricultural Markets Monitoring Unit – April 2014.
SWEETS

Sweets (confectionery products with and without cocoa content - CN 1806 and 1704) were the most valuable items in terms of both the export and import of Polish sugar as well as confectionery products. In 2013, the export of these products rose by 13% to 312.3 thousand tons, and the export value proved to be even more dynamic, increasing by 17% to EUR 1 249 million. In the same period, imports increased by 7% to 167 thousand tons. The value of imported sweets went up by 13% to exceed EUR 545.4 million. The growth rate of export sales was significantly higher than that of import purchases. As a result of these developments the persistently high surplus of exports over imports increased even further. The positive trade balance amounted to EUR 703.6 million (up by 17%) and 145.3 thousand tons (up by 20%).

In terms of volume, chocolate products accounted for 73% of imports, while in terms of value their share was higher by 2 percentage points. On the other hand, chocolate products accounted for 80% and 82% of confectionery exports, by volume and value, respectively.

73% of the volume of chocolate product exports and 71% of their value were to the EU market. The share of EU Member States increased slightly, year on year (more in terms of value though). Other countries also played an important role as export markets (23% of exports), including the CIS countries (6%). In 2013, it was the UK that turned out to be the major market for Polish sweets, absorbing a quarter of total export sales. The UK was followed by Germany (12% share) and the Czech Republic (6%), then Russia (4%), Romania, Hungary, the Netherlands, Italy and Saudi Arabia (approximately 3% shares each). Exports to the top 10, among which only two countries were non-EU states, amounted to 63% of total export sales.

Similarly to previous years, also in 2013 sweets were sourced to Poland mainly from the EU; import purchases from EU Member States accounted for 97% of total imports. Germany continued to be the main supplier, invariably, sourcing 45% of sweets imported to Poland. Other significant source markets included Italy (9%), the Netherlands and Belgium (7% each), the Czech Republic (6%) and the UK (5%). The top ten import markets for Polish sweets included only EU Member States, with a share of 89% of all sweets imported to Poland. The most significant non-EU state was Turkey, with a share of 1%.

The demand for Polish sweets in 2014 will greatly depend on the performance of EU economies.  While sweets are certainly not a basic commodity, they surely are a brilliant idea to sweeten one's life a bit in harsh times. In 2013 and at the beginning of 2014 the cost of cocoa increased, but this increase was offset by a substantial drop in the cost of sugar, the main ingredient of sweets. It is expected that the export of sweets will continue to grow at a similar rate also in 2014.

In the analysed period, the volume of the products designated with the code CN 1704 and 1806 accounted for 29.3% (26.1% in the previous year) of the volume and 77.5% (71.5% in the previous year) of total exports in sugar, products of the sugar industry and confectionery products, when considered together. Export of sweets accounted for 1.7% (1.8% in 2012) in terms of volume and 6.3% (6.0% in the previous year) in terms of value of all exports in agricultural and food product.
Among the group of products, including sugar, sugar industry products and confectionery products, imports of sweets accounted for a share of 25.3% (20.3% in the previous year) and 67.5% (60.9% in 2012) in terms of volume and value, respectively, in the analysed period. On the other hand, imports of sweets accounted for 0.9% (0.8% in the previous year) and 3.8% (3.6% in the previous year) in volume and value of all imports in agricultural and food products.

The increase in the share of sweets in the export of sugar and confectionary products can be attributed to the growing overall export of this product group and the falling export of sugar. As for   the decrease in imports, apart from the growing export of sweets in general, a significant contributor was the shrinking inventory of sugar and to a lesser extent syrups.

Confectionery products without cocoa content

The group of confectionery products without cocoa content includes: chewing gum, liquorice extract, white chocolate, tablets, including sore throat lozenges, confectionery products covered with sugar, jelly products and jellies, boiled sweets, also filled, toffee candies, caramels, confectionery products in the form of compressed tablets and others, not mentioned above.

The volume of the export of confectionery products without cocoa content increased in 2013 by 11% to 61.2 thousand tons. The value of exported goods increased more dynamically, namely by 17% to almost EUR 230.3 million (EUR 196.3 million in 2012). At the same time, imports of these products to Poland amounted to 45.2 thousand tons (down by 0,8% from 45.5 thousand tons) worth just below EUR 137.5 million, which represents an increase of 8% more when compared to Euro 127.2 million in 2012. As a result, the positive trade balance was up by 34% to EUR 92.8 million (compared to EUR 69.1 million in the previous year). In terms of volume the surplus was 16 thousand tons while the trade balance increased by 70% from 9.4 thousand tons. The improvement in the overseas trade of confectionery products without cocoa content is the result of a higher growth rate in the value of exports as opposed to imports, combined with  the negative dynamics of imports and the positive growth rate of exports in terms of volume.

Export

In 2013, the main export commodities were goods designated with the code CN 1704 90 99 (other confectionery products without cocoa content). Exports of these sweets were recorded at 21.5 thousand tons (10% up, share of 35%), amounting to EUR 105.2 million (15% up, share of 46%). Sweets were followed by toffee candies and caramels (CN code 1704 90 75) with overseas sales of 17.4 thousand tons (an increase of 5%) for as much as EUR 41.5 million (8% up). These numbers translate into an 18% share in terms of value and a 28% share in terms of quantity.

Then came boiled sweets, including filled sweets (CN code 1704 90 71) with overseas sales of 8.8 thousand tons (share of 14%) for as much as EUR 26.4 million (share of 12%). Important product items in this export structure were products designated with the code CN 1704 90 65, white chocolate (CN1704 90 30) and other confectionery products coated with sugar (CN 1704 90 61). The most important export markets for Polish confectionery products without cocoa content were the EU Member States, which absorbed 64% of our exports (39.2 thousand tons for Euro 149.9 million - the share by value was higher than the value share by 1 percentage point). Export destinations did not change greatly year on year. CIS countries accounted for 9% of our exports while other non-EU countries accounted for a quarter of the export sales, including NAFTA countries with a 5% share (Canada and USA).

The main export market for Polish confectionery products without cocoa content was the German market, which accounted for 21% of export sales in terms of volume. Our German neighbours purchased more than 12.9 thousand tons of these products for as much as EUR 42.2 million. Germany was followed by the following countries, with smaller shares in our export sales: Saudi Arabia (up by one fifth to 3.9 thousand tons), Russia (3.3 thousand tons), United Kingdom (2.8 thousand tons), Denmark (up by 148%), the Czech Republic, Slovakia (an increase by one third), Romania, Hungary and Sweden.

Among the group of products, including sugar, sugar industry products and confectionery products, exports of confectionery products without cocoa content accounted for a share of 5.7% and 14.3% in terms of volume and value, respectively, in the period analysed. In 2012, those numbers  were 5.2% and 13.1% in shares, respectively. On the other hand exports of confectionery products without cocoa content accounted, in 2013, for 1.2% (1.1% in the previous year) in terms of value and 0.3% (0.4% in the previous year) in terms of the value of all exports of agricultural and food products.

Import

30% of the imports in this product group belonged to other jelly products and jellies, including fruit pastes as confectionery products (CN 1704 90 65), with 13.4 thousand tons imported (6% more than last year) for as much as EUR 34.8 million (up by 21%, 25% share). These were followed by products coated with sugar (CN code 1704 90 61), holding 15% in terms of volume, the imports of which amounted to 6.7 thousand tons for EUR 21.6 million. The overseas purchase of boiled sweets, including filled sweets, was slightly lower (CN 1704 90 716; 6.1 thousand tons). Significant import items were toffee candies, caramels and similar candy products (CN 1704 90 75, 10% share) as well as products with the CN codes 1704 90 30, 1704 90 99 and 1704 90 51. This group accounted for an 8% share in the total imports of confectionery products without cocoa content in terms of volume.
The main overseas suppliers of CN 1704 products to the Polish market include EU Member States, accounting for 92% of our overseas purchase of confectionery products without cocoa content. Imports from EU-26 countries exceeded 41.7 thousand tons (up by 3%) and the value amounted to just below EUR 126.9 million (up by 10%). The geography of our imports remained essentially unchanged, however with a slightly lower importance of non-EU countries.

In 2013, similarly to previous years, confectionery products without cocoa content were primarily imported from Germany - 16.2 thousand tons for EUR 51.9 million, representing a share of 36% in terms of volume and 38% in terms of value. The total volume of imports from Germany increased by 8%, while the value fell by 1%. Germany was followed by the Netherlands, recording a 2% increase to 4.2 million tons (9% share), then the Czech Republic (3.6 thousand tons, a decrease by one third). The above countries were followed by Belgium, Spain, Hungary, Italy and Turkey, and Ireland and Sweden, in the given order.

Imports of confectionery products without cocoa content in 2013 accounted for 1.0%  (0.9% in 2012) in terms of value and 0.2% (also 0.2% a year ago) in terms of the value of all imports of agricultural and food products. Among the group of products, including sugar, sugar industry products and confectionery products, imports of confectionery products without cocoa content accounted for a share of 6.9% (5.9% in the previous year) and 17.0% (15.7% in 2012) in terms of volume and value, respectively, in the analysed period.

Chocolate products

Similarly to previous years, chocolate products (confectionery products with cocoa content) were the most valuable item in Polish exports and imports of sugar and confectionery industry products in the group of products analysed in this section. In 2013, the Polish foreign trade turnover of these products closed with a positive balance of EUR 610.8 million, marking an increase of one fifth to EUR 507.4 million in 2012 (EUR 449.1 million in 2011). In terms of volume our positive trade balance increased by 16% to 129.3 thousand tons (compared to 111.2 thousand tons in the previous year and 92.3 thousand tons in 2011).

Exports in 2013 amounted to 251.1 thousand tons of chocolate products for as much as EUR 1018.8 million (221.7 thousand tons in 2012 for EUR 872.2 million). The total volume of exports increased by 13%, while the value went up by 17%. In the same period, import volumes increased by 10% to 121.8 thousand tons, and the import value increased by 12% to  EUR 408 million (110.5 thousand tons for as much as EUR 364.7 million in 2012).

Export

Most of the export sales of chocolate products landed in EU Member Countries, accounting for three quarters of our overseas sales. EU Member States purchased from Poland 190 thousand tons for EUR 736.9 million (72% share). These numbers translate into an increase of 16% in quantity and 23% in value. Apart from the EU, other significant export markets included Russia and USA, followed by Saudi Arabia, United Arab Emirates and Turkey, with lower shares.

Most of the Polish confectionery products with cocoa content was again sold to the United Kingdom - 71.5 thousand tons (an increase of 9%), which generated EUR 250.5 million (up by 6%). This way the UK accounted for 28% of our exports by volume. Exports to the UK increased significantly after 2004, which could be attributable not only to duty free trade within the European Union, but also to the opening of the UK job market, which resulted in a large economic migration of Poles to the British Isles.

Major export markets also included Germany (an increase of 30% to 25.7 thousand tons, a share of 10%), the Czech Republic (15.4 thousand tons, a share of 6%), Russia, the Netherlands, Romania, Hungary, Italy, France and USA.

The commodity structure of exports was dominated by other filled chocolate products (CN 1806 90 31). Exports of other filled chocolate products recorded just under 55.1 thousand tons (share of 22%), while the value was close to Euro 258.8 million, giving them a share of 25%.
These were followed by paste confectionery products with cocoa content (CN 1806 90 60), with overseas sales of 36.7 thousand tons for Euro 132.2 million. This translated into a share of 15% in terms quantity in the total export structure.

The third group of export products included chocolate products in blocks, tablets or bars (CN code 1806 31 00). The exported volume of these products was recorded at 29 thousand tons (11%  share), amounting to EUR 95.1 million (9% share).

Overseas sales of other processed food products containing cocoa with filling (CN 1806 90 90) as well as products designated with the CN code 1806 32 90 recorded slightly lower numbers. Their share in the structure of exports amounted to 10% each.

Among the group of products, including sugar, sugar industry products and confectionery products, the export of chocolate products amounted to 63.2% (compared to 58,4% in the previous year) and 23.5% (compared to 21.0% in 2012) in terms of volume and value, respectively, in the analysed period. At the same time, the export of chocolate products accounted for 1.4% (similar to the same share of 1.4% in 2012) in terms of volume and 5.1% (4,9% in the previous year) in terms of value - in the export of agricultural and food products.

Import

Imported confectionery products with cocoa content originated almost exclusively from the EU Member States - 99% of the products under the custom tariff code CN 1806, both in terms of volume as well as value, were purchased in EU-26 countries, Imports from EU-15 countries accounted for 87% in quantity and 88% in value. Third countries hardly counted in 2013 as Poland’s source of imports of confectionery products containing cocoa (similarly, in the whole of 2012). Imports from Switzerland fell by 6% to 452 tons. Imports from the Ivory Coast, the world’s largest producer of cocoa beans, fell by as much as half, to merely 172 tons. The total share of these two countries in Polish imports accounted for as little as 0.3% (with Turkey’s share  being 0.2%).

The main supplier of chocolate products to the Polish market has for years been Germany; its sales to Poland in 2013 amounted to 56.4 thousand tons for EUR 198,6 million. In total the imports increased by 4% in terms of volume and 6% in terms of value. Imports from Germany accounted for 46% of the confectionery products with cocoa content, imported by Poland. Much smaller suppliers of chocolate products to the Polish market were also: Italy (12.1 thousand tons), Belgium (7.8 thousand tons), the Netherlands (7.3 thousand tons), United Kingdom (7.1 thousand tons), Austria (6.8 thousand tons), France (6.2 thousand tons) as well as the Czech Republic, Lithuania and Bulgaria.
The structure of Polish imports in confectionery products with cocoa content was dominated by two products. The second group was represented by filled processed food products with cocoa content in blocks, tablets or bars (1806 31 00). By volume, overseas purchases of this commodity amounted to 23.5 thousand tons. This meant a share of 19% in chocolate products with cocoa content, by volume. The value of imports increased by 23% to EUR 86.7 million, representing 21% of the  total imported confectionery products with cocoa content.

The other group were products designated with the CN code 1806 20 95 (other processed food products with cocoa content in blocks, tablets or bars with a weight exceeding 2 kg or products in liquid, paste, powdered, granular form as well as products in other forms, in containers or immediate packaging, with a content exceeding 2 kg), imports of which amounted to 23.5 thousand tons for as much as EUR 66.8 million (19% by volume and 16% by value).

The third group included products designated with the CN code 1806 20 10 (other processed food products with cocoa content in blocks, tablets or bars with a weight exceeding 2 kg or products in liquid, paste, powdered, granular form as well as products in other forms, in containers or immediate packaging, of a content exceeding 2 kg, containing 31% or more cocoa butter, by weight, or containing 31% or more cocoa butter and milk fat by weight, in total). Imports of these products were recorded at 12.7 thousand tons with a value of EUR 31.4 million (share of 10% and 8%, respectively). Imports of products designated with the CN code 1806 90 19 were at a slightly lower level (11.5 thousand tons for EUR 57.1 million).

The above groups were followed by the designated CN codes 1806 90 60 (7.8 thousand tons), 1806 32 90 (7.3 thousand tons), as well as 1806 20 80 and 1806 32 10.
Imports of chocolate products in 2013 accounted for 2.9% (2.7% in 2012) in terms of the value and 0.6% (also 0.6% in the previous year) in terms of the value of all imports of agricultural and food products. Among the group of products, including sugar, sugar industry products and confectionery products, imports of chocolate products accounted for a share of 50,5% (compared to 45,1% in the previous year) and 18.5% (compared to 14.4% in the previous year) in terms of volume and value, respectively.


tagi: polish sweets, food from poland,

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